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Chainlink Gains Traction with Traditional Financial Institutions

#Chainlink #Link #RWA #Sygnum $LINK

Key Collaboration:

Sygnum Partnership: On July 3, digital asset bank Sygnum announced a collaboration with Chainlink and Fidelity International to bring Net Asset Value (NAV) data on-chain.

Supporting Fidelity's Fund:

NAV Integration: The NAV data will support Sygnum’s tokenized offering of Fidelity International's Institutional Liquidity Fund, which holds $6.9 billion in AAA-rated assets. Matter Labs invested $50 million in this fund via Sygnum in March.

Bridging TradFi and Blockchain:

Standards and Collaboration: Sygnum’s head of tokenization, Fatmire Bekiri, emphasized setting standards for collaboration across blockchain firms and traditional financial institutions. Chainlink developed a method for broadcasting NAV data across any blockchain.

Growing TradFi Adoption:

DTCC Pilot: Despite a 2.4% drop in Chainlink's LINK token, Chainlink's adoption among tradfi institutions is growing. In May, the DTCC, with Chainlink and 10 major financial institutions, conducted a pilot to distribute NAV data for mutual funds on blockchains.

Chainlink’s Role in Tokenization:

Interoperability Protocol: Chainlink’s CCIP is key in tokenization pilots by major financial institutions like BNY Mellon, Citi, BNP Paribas, ANZ Bank, Lloyds Banking Group, and SIX Digital Exchange.

Future of Fund Tokenization:

Market Impact: Sergey Nazarov, Chainlink Co-founder, stated that tokenized funds offer global reach and efficiency, transforming asset management. The tokenized U.S. treasuries, bonds, and cash equivalents market cap reached $1.77 billion, a 120% growth in 2024.

Conclusion:
Chainlink's NAV data provision and cross-chain interoperability are pivotal in the growing trend of asset tokenization among traditional financial institutions, shaping the future of asset management.